Buying assets in the right name
“The hardest thing to understand in the world is income tax.” – Albert Einstein
It’s important to buy the right assets but it’s also important to buy them in the right name. For example, the family home is only free of capital gains tax if it’s bought in the name or names of the personal occupants. If you buy assets in the name of a company, you lose the 50% CGT (Capital Gains Tax) exemption that is available to individuals. This is why I urge people to seek advice before they sign any documents – it’s invariably complex and costly to change ownership once the deed is done.